Shares of U.S. Steel are rising ahead of the bell after President Donald Trump ordered a new national security review of Nippon Steel’s proposed bid to buy U.S. Steel for nearly $15 billion, the Associated Press reports. Shares soared 16% Monday and were up nearly 3% before the opening bell Tuesday.
President Joe Biden blocked the deal just before leaving office, and Trump had vowed to do the same in previous months. Late Monday, Trump ordered the Committee on Foreign Investment in the United States to review the transaction “to assist (him) in determining whether further action in this matter may be appropriate.”
The confidential review will look for potential national security risks from the proposed deal, and the U.S. will give Nippon and U.S. Steel time to respond to any concerns. CFIUS will have 45 days to submit a recommendation to Trump detailing whether any measures proposed by Nippon and U.S. Steel are sufficient to mitigate identified risks.
